Dubai property rent decline 'to slow in H2'

Thursday saw CB Richard Ellis saying that the rest of the 2009 will see rents for residential and commercial properties in Dubai dropping; however, drops will be marginal as compared to the first half of the year.

It should be mentioned that an adverse affect has been suffered by the emirate's once-booming property sector due to the global financial crisis. The prices fell and the projects were slowed or cancelled, which led to job cuts.

Matt Green, associate director, Research & Consultancy at the real estate services firm said: "A period of minimal negative growth over the next 3-6 months could see some stability achieved and the market bottom called before year-end."

A poll conducted in June revealed that rents in Dubai will plunge by 40 percent for the full year 2009, and a further 10 percent in 2010, before recovering in 2011.

Furthermore, a significant drop in apartment prices appeared, with expats leaving Dubai; along with an increase in property supply.

The report specified, "Newer residential areas have been worst affected with rents for one-bedroom apartments falling as much as 40 percent year-on-year to 60,000 dirhams ($16,340). Office supply will increase substantially over the next six months with many projects in the latter stages of completion."